In one of James Gosling's article's bullets about the Oracle-Google lawsuit, we find the following nugget (emphasis is mine):

Google did have a financial model that benefited themselves (that they weren't about to share). They were partly planning on revenue from advertising, but mostly they wanted to disrupt Apple's trajectory, and Apple's expected entry into advertising. If mobile devices take over as the computing platform for consumers, then Google's advertising channel, and the heart of its revenue, gets gutted. It doesn't take much of a crystal ball to see where Apple is going, and it's not a pretty picture for Google or anyone else.

Anybody who argue that Google didn't create Android to compete with Apple's iPhone, is deluding themselves.